You can probably find a pretty solid Dodge/Plymouth Neon with manual transmission for less than $1500.
I have had four of these over the years, two bought new, two bought used. I have found them to be very reliable, and very economical. My current daily driver is a 1998 Plymouth Neon Expresso Coupe, with manual transmission and DOHC engine. I average 35MPG in town and 42-46 on the highway. I bought this car in early 2007 for $700, and since I have owned it I have had to replace some shifter bushings, a window regulator, and the radiator and water pump/timing belt. Total cost including buying it is well under $1500.
They are easy to work on, dirt cheap to acquire (particularly the 95-99 models), with a manual transmission they drive fairly well, SOHC puts out 133HP, DOHC models put out 155HP, they weigh 2700lbs or so.